3 credits
Spring 2026 Lecture Distance Learning Upper Division
This course introduces students to macroeconomic theories for some key issues on money and banking, including how interest rates are determined, what the role of financial intermediation is in the macroeconomy, why there exist financial frictions, how these financial frictions can develop into financial crises, and how monetary policy is conducted and affects the macroeconomy. We will discuss modern macroeconomic theories on these issues through the lens of toy versions of the original models, which are suitable for undergraduate students to understand.
Learning Outcomes1Cultivate an "economist's mindset" by integrating real-world economic phenomena, mathematical models, and narrative explanations to analyze and interpret data and trends.
2Evaluate major macroeconomic theories and explanations critically addressing key issues in money and banking, as discussed in the academic literature.
3Articulate insights and analyses on money and banking topics in a clear, systematic, and well-organized written format.
4Apply the 'economist's mindset' and money and banking concepts learned in the course to critically analyze current financial news and issues reported in the news.
Prerequisites
Restrictions
made by Purdue students.